Monday, January 31, 2011

Apple (NASDAQ:AAPL) Loses Ground to Google (NASDAQ:GOOG) in Tablet Market

There was never a doubt that Apple (NASDAQ:AAPL) would lose market share in the tablet market, as they were the first major entry there, and imitators would have to follow, cutting into their market share. That was confirmed with Google (NASDAQ:GOOG), as their Android-powered tablets sales soared.

In the last quarter of 2010, Apple's tablet share fell from 95 percent to 77 percent.

Google continues to take bites out of Apple's iPad dominance, as they grew their tablet share from an anemic 2.3 percent in the third quarter to 22 percent in the fourth quarter, giving the iPad its first real competitive challenge in the tablet sector.

The major tablet behind Androids success is the Samsung Galaxy Tab. They and others are high on Android because of Google's additional services like YouTube, among others, as well as what is perceived as a low-cost alternative to iPad.

Last week Samsung said they had sold about 2 million tablets in the fourth quarter.

Other potentially significant challengers to the iPad are the Xoom tablet from Motorola Mobility (NYSE:MMI), which will also be powered by Android, and Research in Motion's (NASDAQ:RIMM) Playbook.

Apple was trading at $339.06, gaining $2.96, or 0.88 percent, as of 12:56 PM EST. Google was at $600.40, down $0.59, or 0.10 percent, as of 12:57 PM EST. Research in Motion was trading at $59.05 , down $1.10, or 1.83 percent, as of 12:57 PM EST.

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